China's cabinet on Wednesday pledged to regulate what it called "irrational" competition in the country's electric vehicle industry, vowing to strengthen cost investigation and price monitoring, according to state broadcaster CCTV.
The cabinet meeting, presided by Chinese Premier Li Qiang, was held as a two-year price war in the world's largest car market intensifies.
China will focus on promoting high-quality development of the electric vehicle industry and implement comprehensive measures in the short- and long-term to address the "phenomenon of irrational competition" in the sector, CCTV quoted the cabinet as saying, without giving further details.
The cabinet will also urge the main carmakers to fulfil commitments on supplier payment terms and promised to help them boost competitiveness through technological innovation and quality improvement.
Industry regulators and executives have previously warned of excessive competition and called on carmakers to halt the bruising price war which they said threatens the sector's health and sustainable development.
Concerns about oversupply persist, with new vehicles shipped overseas as "used" since 2019, according to a Reuters report last month.
Separately, the cabinet meeting discussed boosting domestic consumption, with policymakers vowing to systematically remove unreasonable restrictions that hinder household spending and optimise policies for a consumer goods trade in programme.
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